BAe looks for a new model of success in small aircraft

David Wragg investigates the new series of jets that British Aerospace hopes will take off in a crowded market place British Aerospace is preparing an up-graded version of its successful RJ regional airliner series, providing more work for the wings and tailplane assemblies built at BAe's Prestwick Military Aircraft and Aerostructures facility. Ten airlines, mainly in the UK and Europe, are interested in the aircraft, which will be called the RJX.

The RJX is an attractive proposition to airlines with short and medium range routes because it uses up to 15% less fuel and has 20% lower maintenance costs with the new Allied Signal AS977 engines, compared to the existing RJ series. The RJ is a development of the BAe 146 airliner, familiar to passengers flying from Scotland to Stansted and Amsterdam by KLM-uk, the former Air UK.

Regarded as being environmentally friendly and as one of the quietest jet airliners in service, the reduced fuel burn will boost the aircraft's environmental credentials and its range.

Designed to carry between 70 and 112 passengers, the new aircraft will follow the pattern set by the present RJ series, by being available in three main versions, the RJX-70, -85 and -100. Prices will vary according to the specification and size of order, but they are expected to range from #15.5 million for the RJX-70 to around #18.25 million for the RJX-100.

Originally intended for small regional airlines, the 146 and RJ series have been operated by some of the world's major airlines. It is Britain's best selling jet, with 219 146s sold, followed by 149 RJs, of which 134 have been delivered.

Operators include KLM-uk, British Airways' recently acquired subsidiary CityFlyer, Sabena, Lufthansa Cityline, Swissair's subsidiary Crossair, Ansett in Australia and New Zealand as well as many American airlines Production of the RJ is around 18 aircraft per year, although this can be increased to more than 20 if necessary.

The RJ series has enabled BAe to remain in the overcrowded regional aircraft business, which has seen its main competitor, the Dutch Fokker, collapse. This is while Sweden's Saab and BAe itself have had to abandon the manufacture of small turboprops, an activity originally centred on Prestwick with the Jetstream family of aircraft. BAe itself has had to take tough decisions, closing one of the two 146 production lines at Hatfield and they now concentrate the final assembly on their Woodford plant, near Manchester.

At one time, BAe entered a collaborative venture with the Franco- Italian ATR operation, to provide a regional version of the Airbus consortium, but disagreements between the partners meant that BAe's participation was short-lived.

The launch of new smaller jet airliners in the 30-50 seat bracket by manufacturers such as Canadair and Fairchild in North America, and Embraer in Brazil, has meant that the market for turboprops is under pressure.

This could be a problem for BAe Asset Management, which looks after the sale or lease of aircraft, including 350 turboprops, many of them traded in part exchange for 146 and RJ jets.

A spokesman denied that the turboprop market was likely to collapse. But they did admit that BAe had been "dented" by the new small regional jets, but also pointed out that on many short haul routes a turboprop was still up to 50% cheaper to operate than a jet, even though they are possibly less attractive to passengers.

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